California Mortgage News

Historical Mortgage Rates: 1970s to 2019

June 3rd, 2019 8:51 PM by Michael Magness

Mortgage Rates are once again at near all time lows

Since mortgage rates bottomed out in 2012, many borrowers have taken advantage of low fixed mortgage rates.  While we saw mortgage rates spike in 2018,  We are now experiencing a dip in mortgage rates once again.  We have rates as low as 3.375% on a 30yr fixed mortgage.

30 Year vs. 15 Year Fixed Rate

Average interest rates on 15 year fixed mortgages have followed this same historical trend, although 30 year fixed mortgages have always been slightly higher.  The higher interest cost comes in exchange for lower monthly monthly payment allowed by the longer 30 year repayment schedule.  However, If you can afford the monthly payment on a 15 year fixed mortgage, you will save a substantial amount of money in total interest vs a 30 year fixed mortgage.

Fixed vs. Adjustable Rate

Five year adjustable rate mortgages, or ARMs, have historically carried lower baseline interest rates than 30 year fixed rate mortgages.  In contrast to the fixed rate mortgage, where the interest rate is fixed for the term of the loan, 5/1 hybrid ARM rates adjust with the market every year after the initial 5 year fixed period.  Rates on hybrid adjustable mortgages are lower during the initial fixed period, however, there is risk to rising rates when the mortgage becomes adjustable.  Adjustable rate mortgages are typically used by borrowers who plan to sell or refinance their home before the initial fixed period ends.

With rates this low, now is an excellent time to purchase a home or refinance your existing mortgage.  Give us a call today to explore your options. 
1st Los Angeles Mortgage Corp.   NMLS #252611   (888) 525-6267
Posted in:Mortgage Rates
Posted by Michael Magness on June 3rd, 2019 8:51 PM

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